BASIC POLICY OF LABOR LAW

The 1987 Philippine Constitution

Protection to Labor Clause
Article XIII, Section 3: The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
 
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law.
 
They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
 
The State shall regulate the relations between workers and employers, recognizing the right of labor to its
just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
The rights of employees under the 1987
Constitution (WHOSE – CD)
The rights granted to employees are the rights:
1. To a living wage;
2. To humane working conditions;
3. To self-organization;
4. To security of tenure;
5. To engage in peaceful concerted activities which includes the right to strike, in
accordance with law;
6. To collective bargaining or negotiation with management;
7. To participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law.
CONSTRUCTION IN FAVOR OF LABOR

Article 4 of the Labor Code.

“Article 4. Construction in Favor of Labor. – All doubts in the

implementation and interpretation of the provisions of this
Code, including its implementing rules and regulations, shall
be resolved in favor of labor.”
CONSTRUCTION IN FAVOR OF LABOR
Follow this rule in interpreting and construing:
 
a. DOUBTS OR AMBIGUITIES IN LABOR CONTRACTS such as
employment contract and collective
bargaining agreement (CBA);

b. DOUBTS OR AMBIGUITIES IN EVIDENCE in labor cases.

Employer – Employee Relationship
Test to Determine Employer – Employee
Relationship: The Four-Fold Test
The elements are:
1) The selection and engagement of the employee;
2) The payment of wages;
3) The power of dismissal; and
4) The power to control the employee’s conduct
(Means and Methods)
Test to Determine Employer – Employee
Relationship: Economic Reality/ Dependence Test

The standard of “economic dependence” of the employee is

whether the worker is dependent on the alleged employer for his
continued employment in that line of business. (Orozco v. CA, GR No.
155207, 2008)

• This is resorted to when there is serious doubt as to the relationship of the employee with the
employer. (Francisco v. NLRC, GR No. 170087, 2006)